GBP/USD rose a bit on stronger UK GDP data

FXStreet (Moscow) - GBP/USD traded at 1.6680 before the UK data, and moved to 1.6698 right after the release.

GDP is out

The pair was not nervous before the UK GDP data release, as the pound already got all the confirmations signaling more economy weakness ahead. Remember, the quarterly growth readings come up too late, and it is a lagging indicator showing the economy state back in the second quarter. That’s why the reaction to the report was subdued. The GDP came out as expected at 0.8% on quarterly basis and above forecasts at 3.2% vs 3.1% y/y sending the pair to 1.6698 right after the release. The next target for the pair may lie at 1.6704, although lack of economic data may leave the pair without fuel for further moves.

What are today’s key GBP/USD levels?

Today's central pivot point can be found at 1.6680, with support below at 1.6661, 1.6637 and 1.6618 with resistance above at 1.6704, 1.6723, and 1.6747. Hourly RSI is bearish at 47, while hourly Moving Averages are bearish, with the 200SMA at 1.6791, and the daily 20EMA bearish at 1.6869.

Aug 15, 2014

UK: GDP grows 0.8% in Q2, as expected

On a quarterly basis UK GDP grew 0.8% in Q2, following a 0.8% rise registered the previous quarter, according to preliminary data released today by National Statistics. This result is in line with market consensus.